RICHMOND, Va.- Dominion on Monday said it agreed to sell most of its U.S. onshore natural gas and oil exploration and production operations in two separate transactions for approximately $6.5 billion.
These operations include 3.51 trillion cubic feet equivalent (Tcfe) of proved natural gas and oil reserves as of Dec. 31, 2006.
Loews Corp. will purchase Dominion’s operations in the Permian Basin, Michigan and Alabama for $4.025 billion. XTO Energy Inc. will purchase the Rocky Mountains, Gulf Coast, San Juan Basin and South Louisiana operations for $2.5 billion.
Closing on both sales is expected in August.
Dominion will retain its Appalachian operations, including 1 Tcfe of proved reserves as of Dec. 31, 2006.